Home Appreciation

Property prices are forever in flux. Usually, home values appreciate in the long term. But, in real estate there are no guarantees.

When your home appreciates you have a greater asset to borrow against, and you'll realize a bigger profit when you sell. Property values on the Palos Verdes Peninsula shift for a variety of reasons, so how will you know what you're buying presently won't depreciate the day after you close? Choosing a real estate agent in Palos Verdes Peninsula who is familiar with the factors that drive local prices is the most important factor to consider.

What is the most influential factor affecting real estate appreciation? Many assume that it's the economy. Clearly, mortgage rates, employment, business growth, government programs and numerous other national determinants have a noticeable effect on your house's value. However, your home's value and the components that play the most significant role in its appreciation are particular to the local Palos Verdes Peninsula economy and housing market.

Access to services - Many of us wish to live in regions with the most useful factors for families to thrive, like a close proximity to schools and work. So when it comes to holding their value, these areas often appreciate the best.

Recent sales - Your REALTOR® should provide you with figures on the recent home sales in the neighborhoods that you're asking about. You'll want to know average time on market, selling versus listing price and more.

History of appreciation - In the last 5-10 years, have house prices risen or declined? Does location or affordability affect how desirable the community is thought to be?

The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a good combination of business in an area, or does it rely upon just one industry? Is the blend of commercial and residential development changing? Each of these elements plays a role.